Earnings Preview: Biogen Idec

Biogen Idec (BIIB) is expected to report Q2 earnings before market open Tuesday  July 22, with a conference call scheduled for 8:30 am ET.

Guidance

Analysts are looking for a profit of 85c on revenue of $962.1M. The consensus is 82c to 92c for EPS, and revenue of $930M to $993M, according to First Call. The company posted strong results in Q1. It reported Q1 EPS 83c vs. consensus of 79c and Q1 revenue $942M vs. consensus of $890M .

Analyst Views

Tysabri sales should be strong for Q2 due to a rising overseas prescriber base. Also positive for Tysabri is the January 2008 FDA approval of Tysabri for treatment of Crone's disease. Possible negative events for Q2 are slowing Tysabri sales. On July 17, Jefferies noted that the stock is already pricing in strong Q2 results and the firm reiterated its Hold rating. On July 21, Merrill upgraded the stock to a Buy from an Underperform. The firm upgraded Biogen based on earnings growth, an improved outlook for the multiple sclerosis market, and its mid to late-stage pipeline. The firm raised its price target to $79 from $64.